Modeling the Value-Adding Attributes of Real Estate to the Wealth Maximization of the Firm

32 Pages Posted: 13 Dec 2006

See all articles by Anna-Liisa Lindholm

Anna-Liisa Lindholm

Helsinki University of Technology

Karen M Gibler

Georgia State University - Department of Real Estate

Kari I. Leväinen

Helsinki University of Technology

Abstract

Firms develop strategies to help them achieve their primary goal of maximizing the wealth of the shareholders. These strategies should define the supporting role corporate real estate management plays; however, current theory and practice do not adequately identify the direct and indirect methods by which corporate real estate management (CREM) adds value to the firm. This paper develops a model of how real estate adds value to the firm to help fill this void. This model can be then used to develop more precise and complete metrics to measure the value real estate adds to the firm.

Keywords: corporate real estate management, CREM, value, real estate

JEL Classification: R33, R39, R30, R32, R11, R14, R15, R19

Suggested Citation

Lindholm, Anna-Liisa and Gibler, Karen M and Leväinen, Kari I., Modeling the Value-Adding Attributes of Real Estate to the Wealth Maximization of the Firm. Journal of Real Estate Research, Vol. 28, No. 4, 2006, Available at SSRN: https://ssrn.com/abstract=951487

Anna-Liisa Lindholm

Helsinki University of Technology ( email )

02015 Espoo
Finland

Karen M Gibler (Contact Author)

Georgia State University - Department of Real Estate ( email )

P.O. Box 4020
Atlanta, GA 30303-4020
United States

Kari I. Leväinen

Helsinki University of Technology ( email )

02015 Espoo
Finland

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